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ICT PROFESSIONALS EMPLOYMENT AND REMUNERATION REPORT2019

IT ProfessionalsAustralia

IT Professionals Australia represents ICT professionals across the full spectrum of industries and specialisations. Our members work in a wide variety of roles including ICT trainers, ICT sales, business and systems analysts, multimedia specialists, web developers, software and applications programmers, database and systems administration, ICT security, ICT support, test engineers, telecommunications and ICT management as employees, via labour hire agencies and as contractors and consultants.

IT Professionals Australia is a division of Professionals Australia (formerly the Association of Professional Engineers, Scientists and Managers, Australia) which is an organisation registered under the Fair Work Act 2009 representing over 25,000 Professional Engineers, Professional Scientists, Veterinarians, Architects, Pharmacists, Managers, Transport Industry Professionals, Translating and Interpreting Professionals as well as Information Technology Professionals throughout Australia. Professionals Australia is the only industrial association representing exclusively the industrial and professional interests of these groups.

ABOUT IT PROFESSIONALS AUSTRALIA

IT Professionals Australia GPO Box 1272, Melbourne, Vic. 3001 e: info@professionalsaustralia.org.au w: www.professionalsaustralia.org.au/information-technology/ t: 1300 273 762

Copyright© 2019 Professionals Australia

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means,

electrical, mechanical, photocopy, microfilming, recording or otherwise, without written permission from Professionals Australia.

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CONTENTSINTRODUCTION 6KEY FINDINGS 8IT WORKFORCE DEMAND 10

Characteristics of the ICT labour market 12REMUNERATION 13

Employment sector 14Industry 16Responsibility level 17Job function 18State 19Skills 20Graduates 24Gender 26Satisfaction levels and salary expectations 27

WORKPLACE ISSUES 28Working hours and overtime 28Professional development 30Individual and workplace priorities 31Staff morale, worker fatigue and productivity 31Future prospects and value to organisation 32

INDEPENDENT CONTRACTORS 34Recommended hourly rates 36Contract agency rates 36

ABOUT THE SURVEY 38

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Continuing strong growth in the ICT sector is expected throughout 2019/20. The Federal Government has expanded its focus on IT integration, data sharing, reduced bottlenecks and more streamlined public access to services with the establishment of a new Services Australia agency under the Human Services portfolio. They also announced a $156m cybersecurity capabilities pledge in late April that will flow through over the next 12 months. The Federal Government’s annual ICT expenditure is around $6 billion they are likely to remain a major stakeholder in the ICT market over the next three years.

The investment in telecommunications infrastructure will continue to require highly-skilled ICT professionals but there has been no indication by the Coalition that they are ready to invest in strategies to upgrade the NBN network to its full potential. Major job losses are underway at Telstra as part of its T22 strategy with a focus on reducing numbers in executive and management roles. A shift to new engineering capabilities is likely to create opportunities for ICT professionals. The digitisation of business processes, the continuing shift to the cloud for storage, greater imperatives for the security of data, the ongoing growth of mobile application development, growth in artificial intelligence and greater investment in data analytics capability by businesses are expected to drive continuing demand for skilled tech professionals in these areas and improved salary levels across the IT and non-tech sectors.

The market for contractors is generally strong as organisations including the Federal Government use flexible engagement options in response to staffing caps or wanting to keep permanent headcount low as well as a response to rapidly-changing business needs, the outsourcing of the risk of major IT upgrades, buying in the specific skill sets they need and getting key projects implemented and finalised. The Federal Government has committed to their strategy of “utilising contractors as a means of keeping the overall cost of

INTRODUCTIONadministration low when it temporarily needs access to relevant skills and expertise, or when they can be more efficiently obtained in the private sector than developing in-house capability”.1 The NSW Government in contrast however has undertaken to cull thousands of contractors in an effort to save around $3 billion over the next four years. Telstra has also signalled that it will reduce its indirect workforce by around 10,000 which will impact those contracting to Telstra via consultancies, labour hire firms and outsourcing providers.

Contracting options continue to remain attractive to smaller companies that lack the scale or knowledge to build an in-house capability or require specialist skills for one-off projects. The market continues to offer good opportunities for contractors. Government rates however are likely to be increasingly subject to caps in response to the market driving up daily IT and other consultancy rates.

According to recent data from Deloitte, employment in the number of ICT professionals is expected to grow to 758,700 by 20232, reflecting the increasingly integral role of ICT in business transformation while also providing a raft of new opportunities for ICT professionals. Despite strong growth, some challenges remain for local ICT professionals in the face of the range of unique set of characteristics of that mark the Australian ICT market including widespread offshoring in a competitive global IT market, large-scale importing of labour and lack of gender diversity in the ICT workforce.

If Australia is to remain competitive in this period of rapid change, we need to create a sustainable Australian ICT labour market that properly recognises and rewards the unique mix of skills and people that make it up. As well as ensuring strong wage growth that ensures organisations can attract and retain the skilled ICT professionals to help modernise their operations, Professionals Australia sees a strong need to ensure that proper migrant wage protections are in place and enforced, that skilled migration and temporary skilled visa programs sit alongside independent and up-to-date analysis of areas genuinely in shortage, that a level of secure work exists over and above insecure, short-term, project-based positions in the industry, that offshoring doesn’t replace proper investment in the further training and development of local IT professionals and that initiatives are put in place to lift the participation rate and retention of women in the tech workforce and increase domestic IT enrolments and completions.

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Chris Walton CEO, Professionals Australia

Overall, our survey recorded median annual wage growth of 2.1 per cent, representing an outperformance of CPI, but not of WPI. Public sector annual growth was 3.6 per cent but private sector increases averaged only 1.7 per cent – barely even meeting the CPI increase for the previous 12 months. As a group, ICT professionals’ pay has stayed ahead of the cost of living, but growth is falling behind that of other Australian employees despite the critical importance of ICT infrastructure and services for Australian organisations. Employers will need to ensure they incorporate this wage growth into their remuneration strategies if they are to successfully compete for the best ICT talent in the year ahead. The current environment of technological advancement presents a unique opportunity for ICT professionals to accelerate and diversify their careers.

The remuneration information provided in this report provides a strong basis for ICT professionals and employers to work together to ensure that the ICT professionals in their organisations are properly respected, recognised and rewarded. This will ensure the innovation and productivity improvement potential offered by advancing technologies is fully realised across Australian government and businesses.

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KEY FINDINGS

REMUNERATION• Survey respondents recorded median annual wage growth

of 2.1 per cent with a median base salary of $100,000 and median total package of $114,975. This growth represents an outperformance of CPI at 1.6 per cent but not WPI at 2.3 per cent (to June quarter, 2019).

• Private-sector respondents reported a median base salary of $100,000, and a median increase in their salaries of only 1.7 per cent over the last 12 months but with significant variability in the quantum of increases across the sector.

• Public-sector respondents reported a median base salary of $107,887, and a median increase of 3.6 per cent over the last 12 months.

• The Electricity, gas, water and waste services industry recorded the highest median base salary at $138,500. The Manufacturing industry came in second with a median base salary of $125,000. The Transport, postal and warehousing as well as Public administration and safety industries followed with median base salaries of $120,000 and $113,500 respectively.

• The Public administration and safety industry recorded the highest median wage growth at 4.6 per cent followed by the Transport, postal and warehousing industry at 3.6 per cent and the Internet services providers, web search portals and data processing services industry also at 3.6 per cent.

• 41.2 per cent of respondents reported being satisfied or very satisfied with their current remuneration, with a concerning 26.7 per cent reporting being dissatisfied or very dissatisfied.

• Respondents were generally optimistic in their expectations as to future wage growth with 44.1 per cent predicting growth of over 2.0 per cent over the coming year. 28.7 per cent reported that they expected wage growth of less than 1 per cent, showing the persistent uncertainty around pay in the profession.

SKILLS• The skills attracting the highest pay were Perl, Ruby on Rails

and Social media.

• The skills attracting the highest wage growth over the past year were data warehousing, followed by PHP, Oracle, ASP and Business intelligence.

• Cloud services was the most commonly held skill among respondents followed by System administration, Linux, Information security and SQL.

• Respondents identified ASP, UI/UX, IdAM, PHP and Modelling as the most likely to increase in demand.

• Respondents identified e-commerce, SCCM/SCOM, MS Dynamics, ETL and Citrix as the skills expected to decline in demand.

• Respondents identified e-commerce as the skill most at risk from offshoring over the next three years, followed by Citrix, Oracle and business intelligence.

• Respondents to the survey had undertaken predominantly ICT-related training in the previous 12 months. Of those who had undertaken professional development activities, around half had training provided by their employer. The level of employer-provided training was higher among public sector respondents than for private sector respondents.

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WOMEN IN ICT• According to the Workplace Gender Equality Agency, a

gender pay gap of around 17.1 per cent persists across the ICT profession. Our survey confirmed a pay gap with male respondents’ base salaries averaging $107,035 while female respondents’ base salaries averaged $88,925, indicating a pay differential of 20.4 per cent.

• 59.8 per cent of survey respondents said their workplace currently had formal policies in place to promote diversity.

• 69.8 per cent said their workplace currently had formal policies in place to deal with discrimination.

• 25.1 per cent said they did not believe the employer had strategies in place to actually implement policies relating to diversity and discrimination.

• 43.8 per cent of female respondents said they had been discriminated against on the basis of gender in their workplace over the last three years compared to 3.2 per cent of male respondents.

• 47.1 per cent of female respondents and 6.5 per cent of male respondents reported having been sexually harassed in their careers.

WORKPLACE ISSUES• Respondents reported working an average of 41.4 hours

per week, with an average of 3.1 hours of overtime. A concerning 47.9 per cent of respondents reported receiving no compensation for overtime - 52.3 per cent and 34.5 per cent in the private and public sectors respectively.

• Respondents identified work/life balance as their highest workplace priority, followed by pay, professional development opportunities and job security.

• 19.3 per cent of ICT professionals reported being concerned about future opportunities in ICT and 25.8 per cent reported that the profession offers poor long-term career paths.

• 47.3 per cent of respondents expect an increase in opportunities for ICT professionals over the next 12 months, with 28.0 per cent expecting an increase in opportunities in decision-maker roles.

• 19.4 per cent of respondents believe their employers do not understand or barely understand the ability of ICT professionals to drive efficiencies.

• 21.0 per cent of respondents believe their employers do not understand or barely understand the ability of ICT professionals to drive innovation.

• 24.2 per cent of respondents believe their employers do not understand or barely understand the ability of ICT professionals to drive profit.

• 54.5 per cent of respondents reported being satisfied or very satisfied with their current role. 20.3 per cent reporting being dissatisfied or very dissatisfied with their current role.

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IT WORKFORCE DEMAND

Australia’s ICT workforce continues its long-term pattern of growth, with the number of ICT positions rising to 723,334 in 2018³ , up from 663,100 in 2017, 640,846 in 2016 and 628,000 in 2015. This figure is forecast to grow to 792,000 professionals by 2024, providing a raft of employment opportunities as ICT positions become more pervasive across the economy.

YEAR-ON-YEAR JOB ADS

The Department of Employment’s Internet Vacancy Index reported strong availability in ICT roles. March 2019 figures show strong growth of 9.0 per cent year on year across IT occupations with decline in job ads evident only for Multimedia specialists and web developers (-9.3 per cent). Growth in the larger occupations of ICT business and systems analysts and Software and applications programmers of 14.0 and 13.6 per cent respectively provide excellent prospects for ICT professionals in the market for new roles.4

FIGURE 1 - ANNUAL CHANGE IN JOB VACANCIES FOR ICT ROLES (%)

12.1%

2.2%6.2%

14.0%

-9.3%

9.9%13.6%

10.3% 9.2%

2.5%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

ICT

man

ager

s

ICT

trai

ners

ICT

sale

s pr

ofes

sion

als

ICT

busi

ness

and

sys

tem

s an

alys

ts

Mul

timed

ia s

peci

alis

ts

and

web

dev

elop

ers

Soft

war

e an

d ap

plic

ation

s pr

ogra

mm

ers

Dat

abas

e an

d sy

stem

s ad

min

istr

ator

s an

d IC

T se

curi

ty s

peci

alis

ts

Com

pute

r net

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k pr

ofes

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als

ICT

supp

ort a

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ngin

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Tele

com

mun

icati

ons

engi

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s

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ROLES MOST IN DEMAND

The market for new positions remains relatively concentrated, with the top two roles of ICT business and systems analysts and Software and applications programmers accounting for three-quarters of all positions. Software and applications programmer positions accounted for the largest share of job advertisements at 51.2 per cent, with ICT business and systems analysts accounting for 25.2 per cent of advertisements. Database and systems administrators and ICT security specialists was the third most advertised role at 6.9 per cent, followed by ICT support and test engineers at 5.2 per cent and Computer network professionals at 4.3 per cent.5

FIGURE 2 - DISTRIBUTION OF JOB VACANCIES IN ICT PROFESSION BY ROLE (%)

,

Database and Systems Administrators, and ICT

Security Specialists

6.9%

TelecommunicationsEngineering

Professionals

0.8%

ICT Support and Test Engineers

5.2%ICT Managers

4.1%

Computer Network Professionals

4.3%

Multimedia Specialists and

Web Developers

2.0%

ICT Sales Professionals

0.2%

ICT Trainers0.1%

,

,

51.2%Software and applications

programmers

25.2%ICT Business and systems

analysts

JOB VACANCIES BY STATE

Geographically, job vacancy data was strongly correlated with overall workforce distribution. New South Wales, Victoria and Queensland again dominated the market, accounting for 82.5 per cent of vacancies.

Additionally, the ability to manage many ICT roles remotely allows larger firms to locate themselves in the larger cities, closer to the majority of the skilled workforce, while also capturing a share of work in smaller states and more remote locations.NSW

40.7%

QLD 14.3%

VIC 27.5%TAS

0.5%

ACT 7.3%

FIGURE 3 - DISTRIBUTION OF JOB VACANCIES IN ICT PROFESSIONS BY STATE (%)

Source: Department of Employment, Internet Vacancy Index – April 2019

NT 0.3%

WA 5.8%

SA 3.6%

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CHARACTERISTICS OF THE ICT LABOUR MARKETAccording to the Grattan Institute, a range of factors combine to create a complex and highly competitive IT employment market. These include high levels of skilled migration, temporary work visas, international students staying on to find work in the industry, offshoring, an IT degree not being required for IT employment, the rapid pace of change in the skill requirements of industry and a mismatch between the skills of graduates and employer needs

• In 2015 workers with qualifications from overseas made up 30 per cent of employed IT professionals compared to 23 per cent of engineering professionals and 20 per cent of science professionals6.

• Only two-thirds of ICT professionals born in Australia have a university degree. About a quarter hold upper-level vocational qualifications while some opt for those offered by Microsoft and Cisco7.

• In 2016, the number of IT professionals brought in by Australian businesses on 457 visas grew to fill skills shortages grew to nearly 11,000 while the number of 457 visa holders in engineering and science has steadily declined since 20128. Since then, 457 visas have been replaced by new temporary skill shortage visas.

• Net migration of ICT workers stood at 19,600 in 2014-15, six times the number of completing domestic bachelor graduates9.

• The expense of in-house services compared to cheaper alternatives overseas affects the way the ICT industry operates in Australia10. Competition from firms and workers overseas leads to outsourcing offshore, often causing major loss of jobs/redundancies.

• Since 2009, Australia has been a net importer of ICT services importing $2.6 billion and exporting $2.3 billion11.

• Monthly job vacancies are significantly higher for IT than for other STEM fields, although often for specific projects rather than ongoing positions12.

• IT graduate skills and attributes are mismatched with the labour market13. This compromises employment rates for IT graduates on entry into the labour market.

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Survey respondents recorded median annual wage growth of 2.1 per cent across the wider profession. This moderate growth represents an outperformance of 1.6 per cent for the Consumer Price Index (CPI)14 , but not of 2.3 per cent for the Wage Price Index (WPI)15 to June 2019. Following this growth the median base salary reported by participants was $100,000 and the median total package figure $114,975.

REMUNERATION

While wage growth continues to be contingent on sector as well as demand for skill specialisations, industry and geographic location, the reasonable overall growth reflects the broader shift towards the utilisation of technology to modernise operations across government and business. The Federal Government continues to invest in its ICT infrastructure and digital capability with the establishment of Services Australia, an increased focus on boosting data sharing across agencies and a commitment improving public access to services. The investment in national telecommunications infrastructure continues to require high-skill ICT professionals. The digitisation of business processes, the push for businesses to expand their online presence, the shift to the cloud for storage, an imperative for greater data security, the ongoing growth of mobile apps, growth in artificial intelligence and machine learning and greater investment in data analytics capability by businesses are all driving continuing demand for skilled tech professionals in these areas and salary levels are expected to firm across the IT and non-tech sectors in response.

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FIGURE 4 - MEDIAN ANNUAL BASE SALARY AND TOTAL PACKAGE BY SECTOR ($)

$113,880

$123,000

$112,882

$114,975

$100,000

$107,887

$94,627

$100,000

$0k $20k $40k $60k $80k $100k $120k $140k

Private Sector

Public Sector

Other Sectors

All Respondents

Base Salary Total Package

EMPLOYMENT SECTORICT professionals in the public sector reported a median base salary of $107,887 and total package of $123,000, compared with $100,000 median base salary and total package of $113,880 in the private sector.

Remuneration growth differed by sector, reflecting diverse needs and variation in demand. While mean annual wage growth was stronger in the public sector with growth at 3.7 per cent compared with 2.8 per cent in the private sector, median results were more subdued for the private sector with growth of 1.7 per cent while being largely unchanged in the public sector at 3.6 per cent. This suggests that there was consistent growth in the public sector above CPI/WPI, while the private sector had a far greater degree of variability in the quantum of increases with some professionals receiving positive increases and the wages of others remaining stagnant or declining in real terms.

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FIGURE 5 - ICT PROFESSIONAL MEAN ANNUAL SALARY MOVEMENTS COMPARED TO ECONOMIC INDICATORS (%)

FIGURE 6 - ICT PROFESSIONAL MEDIAN ANNUAL SALARY MOVEMENT COMPARED TO ECONOMIC INDICATORS (%)

Perc

enta

ge in

crea

se

2.8%3.7%

4.5%

3.1%

1.6%2.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Private sector Public sector Other sectors All sectors CPI WPI

Perc

enta

ge in

crea

se

1.7%

3.6%

2.4% 2.1%1.6%

2.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Private sector Public sector Other sectors All sectors CPI WPI

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INDUSTRYRemuneration varied significantly by industry owing primarily to the diverse nature of ICT roles. While ICT professionals are becoming more important in the day-to-day operations of all businesses, the specifics of their work are highly dependent on their industry, with some industries producing primarily digital services, while others utilise more basic enabling technology in their operations.

The Electricity, gas, water and waste services industry recorded the highest median base salary at $138,500 (median total package $156,111). The Manufacturing industry came in second, with a median base salary of $125,000 (median total package $136,875). The Transport, postal and warehousing as well as Public administration and safety industries followed with median base salaries of $120,000 and $113,500 respectively (median total packages of $131,400 and $130,205 respectively).

The public administration and safety industry recorded the highest median wage growth at 4.6 per cent followed by the transport, postal and warehousing industry and the Internet Service Providers, web search portals and data processing services industries, both at 3.6 per cent.

FIGURE 7 - SIZE OF ICT WORKFORCE (%), MEDIAN BASE SALARY ($) AND MEDIAN ANNUAL SALARY MOVEMENTS (%) BY INDUSTRY

INDUSTRY EMPLOYMENT

The wider Information Media and Telecommunications sector16 is by far the largest employer of ICT professionals, accounting for 50.8 per cent of all ICT employees across Australia. These businesses require ICT professionals in their day-to-day operations, and also provide consulting services to businesses in other industries. Outsourcing to specialist IT firms can be particularly attractive to smaller companies that lack the scale or knowledge to build an in-house capability, or companies that require specialist skills for one-off projects.

The Computer System Design and Related Services industry (a subset of the Information, Media and Telecommunications subdivision) accounts for the largest share of employment (34.4 per cent) followed by Telecommunications Services (14.1 per cent), Professional, Scientific and Technical Services (11.5 per cent), Public Administration and Safety (7.5 per cent), and Financial and Insurance Services (7.1 per cent). While the ICT specialist industries are clearly the major employers of ICT professionals, just under half of ICT professionals are employed outside of these industries. This highlights the wide array of opportunities available to ICT professionals and the pervasive nature of demand for their skills across the economy.17

Internet service providers, web search portals and data

processing services

0.9%$109,000

services e, forestry

Computer system design and related services

34.4%

$101,0000.0%

Telecommunications

14.1%

$98,7721.4%

4.6%

Professional, scientific and technical services

11.5%

$100,0001.8%

Public administration and safety

7.5%

$113,500

Retail trade

3.3%

$103,5000.7%

Education and training

3.3%

$91,2532.5%

Manufacturing

3.1%

$125,0003.1%

Financial and insurance services

6.4%

$107,5000.8%

Healthcare and social assistance

2.6%

$103,5000.7%

Transport, postal and

warehousing

1.4%

0.9% 0.8%

0.9%

0.5%

$120,0003.6%

Electricity, gas,water and

waste services

1.4%

$138,5002.5%

Wholesale trade

1.9%

SNR

Administrative and support services

1.3%

SNR

Construction1.1%

SNR

3.6%$105,683

1.8%$109,000

Mining0.6%

SNR

Arts and recreation services0.9% Other services0.8%

Rental, hiring and real estate services 0.5%

SNR

Accommodation and food services0.4%

0.4%0.2%

SNR

Agriculture, forestry and fishing0.2%

SNR

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RESPONSIBILITY LEVELResponsibility level is one of the strongest indicators of remuneration with salaries rising as responsibility level increases. The median annual base salary for a Level 1/SFIA Level 3 ICT professional was $65,000 and the mean annual total package figure was $71,175. Wages at the lowest level of responsibility are constrained by a high level of entry-level staff and graduates. Not surprisingly, remuneration was greatest at Level 5/SFIA Level 7 where the median annual base salary reached was $167,500 and the annual total package figure was $195,388. This level is comprised primarily of management level employees.

Median annual salary growth was greatest at responsibility level 4.

FIGURE 8 - ICT PROFESSIONAL AVERAGE (MEDIAN) BASE SALARY AND TOTAL PACKAGE BY LEVEL OF RESPONSIBILITY ($)

FIGURE 9 - ICT PROFESSIONAL MEDIAN ANNUAL SALARY MOVEMENTS BY RESPONSIBILITY LEVEL (%)

TABLE 1 - ICT PROFESSIONAL BASE SALARY AND TOTAL PACKAGE BY RESPONSIBILITY LEVEL ($)

BASE SALARY TOTAL PACKAGE

LOWER QUARTILE

MEDIANUPPER

QUARTILEMEAN

LOWER QUARTILE

MEDIANUPPER

QUARTILEMEAN

Level 1/SFIA Level 3 $51,000 $65,000 $73,000 $64,190 $55,845 $71,175 $81,030 $72,936

Level 2/SFIA Level 4 $74,000 $87,000 $102,000 $88,070 $82,125 $97,265 $114,192 $100,010

Level 3/SFIA Level 5 $95,000 $110,000 $130,000 $114,038 $106,215 $127,703 $148,500 $130,785

Level 4/SFIA Level 6 $107,887 $136,500 $147,000 $131,146 $123,289 $150,563 $165,887 $154,409

Level 5/SFIA Level 7 $120,000 $167,500 $191,000 $158,601 $133,400 $195,388 $225,865 $198,366

Ann

ual s

alar

y m

ovem

ent

2.4%1.8%

2.2%2.7%

1.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Level 1/SFIA Level 3

Level 2/SFIA Level 4

Level 3/SFIA Level 5

Level 4/SFIA Level 6

Level 5/SFIA Level 7

$71,175$97,265

$127,703$150,563

$195,388

$65,000 $87,000$110,000

$136,500$167,500

$0k

$50k

$100k

$150k

$200k

$250k

$300k

Level 2/SFIA Level 4

Level 3/SFIA Level 5

Level 4/SFIA Level 6

Level 5/SFIA Level 7

Level 1/SFIA Level 3

Base Salary Total Package

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JOB FUNCTIONBy job function, remuneration was greatest in Sales and marketing roles with an average median base salary of $148,000 and a total package of $180,010.

Annual salary growth was greatest in Development and Implementation roles.

FIGURE 10 - ICT PROFESSIONAL AVERAGE (MEDIAN) BASE SALARY AND TOTAL PACKAGE BY JOB FUNCTION ($)

FIGURE 11 -ICT PROFESSIONAL MEDIAN ANNUAL SALARY MOVEMENT BY JOB FUNCTION (%)

$98,608

$114,975

$123,928

$124,864

$137,944

$180,010

$85,000

$102,000

$100,000

$111,000

$115,005

$148,000

$0k $20k $40k $60k $80k $100k $120k $140k $160k $180k $200k

Technical Support and Maintenance

Development and Implementation

Service Delivery

Management andAdministration

Strategy and Planning

Sales and Marketing

Base Salary Total Package

Ann

ual s

alar

y m

ovem

ent

2.7%2.3% 2.1%

1.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Development and Implementation

Management and Administration

Technical Support and Maintenance

Service Delivery

PAGE 19

STATEThe eastern seaboard states continued to dominate ICT employment with NSW, VIC and QLD accounting for 82.6 per cent of all ICT jobs18. Major ICT firms and larger employers of ICT professionals (e.g. financial services firms) tend to be located in the major capitals and head-office locations in these areas are particularly large employers. ICT consulting firms also tend to be located close to their market and the high number of client businesses in Sydney, Melbourne and Brisbane make these cities high-employing locations. Relative to its size, the ACT is also a major employer, with many large public-sector organisations employing ICT professionals and agencies providing ICT contract labour to the Federal Government.

Across Australia, the highest average wage was recorded in New South Wales with remuneration in this state significantly outperforming other states. While wages in Queensland and South Australia were not the highest comparatively, growth exceeded that in both NSW and Victoria. Average salary and growth in Victoria fell behind other states.

Challenges are likely to emerge as the workforce responds to varying salaries in different states, with ICT professionals in Victoria, Tasmania and South Australia likely to consider the possibility of more attractive salaries in New South Wales, the ACT, WA or Queensland. Employers will need to ensure their remuneration remains competitive or risk losing key staff.

NSWEMPLOYMENT

286,978BASE SALARY

$112,000GROWTH 1.9%

SAEMPLOYMENT

36,477BASE SALARY

$90,000GROWTH 2.7%

WAEMPLOYMENT

47,597BASE SALARY

$106,000GROWTH 4.1%

NTEMPLOYMENT

3,186BASE SALARY

SNRGROWTH

SNR

ACTEMPLOYMENT

24,980BASE SALARY

$109,000GROWTH 1.7%

QLDEMPLOYMENT

97,780BASE SALARY

$103,500GROWTH 2.0%

VICEMPLOYMENT

219,073BASE SALARY

$97,500GROWTH 2.1%

TASEMPLOYMENT

7,264BASE SALARY

$93,000GROWTH

SNR

FIGURE 12 - ICT EMPLOYMENT19, MEDIAN BASE SALARY20 AND MEDIAN ANNUAL SALARY GROWTH21 BY STATE

Employment data based on ABS Census 2016. Wage and growth data sourced from survey respondents. SNR - Sample not representative

PAGE 20

SKILLSThe set of skills required by an ICT professional may differ significantly based on the nature of the employee’s organisation or the specifics of the role. Different companies employ differing forms of technology and software and use technology to varying extents throughout their day-to-day operations. ICT roles may be used to support basic administrative functions, or they may play key enabling or transformative roles within organisations. As a result, skills are a key determinant of remuneration, as they effectively establish the specific functions that an employee performs.

TABLE 2 - ICT PROFESSIONAL BASE SALARY, TOTAL PACKAGE AND SALARY MOVEMENT BY SKILLS USED IN ROLE

N

BASE SALARYANNUAL SALARY

MOVEMENT

LOWER QUARTILE MEDIAN UPPER QUARTILE MEAN MEDIAN

Cloud Services 103 $85,000 $100,000 $130,000 $107,294 1.23%

System Administration 90 $85,000 $100,000 $128,000 $105,729 2.42%

Linux 85 $89,000 $108,000 $135,000 $111,751 2.80%

Information Security 82 $85,000 $108,000 $130,000 $109,737 2.40%

SQL 79 $82,000 $100,000 $120,000 $104,600 2.13%

Testing 78 $85,000 $97,766 $120,000 $100,955 2.05%

Software Development 74 $84,000 $100,000 $122,000 $104,438 2.67%

Database Management 73 $82,000 $100,000 $112,000 $100,091 2.67%

Project Management 70 $96,500 $110,000 $138,000 $117,632 2.05%

Network Administration 69 $85,000 $102,000 $130,000 $106,473 2.56%

System Architecture 69 $90,300 $108,000 $135,000 $112,356 2.00%

Technical Writing 67 $90,000 $112,000 $135,000 $113,869 1.74%

HTML/CSS/JavaScript 63 $78,270 $100,000 $120,000 $102,623 1.75%

Management 54 $90,300 $113,503 $138,000 $120,101 2.33%

Python 53 $90,000 $110,000 $135,000 $115,163 3.03%

Compliance & Risk 52 $84,500 $104,500 $130,000 $109,214 1.63%

Data Analytics 52 $76,861 $106,500 $130,000 $108,812 2.09%

Network Design 51 $85,000 $105,000 $136,000 $111,607 2.41%

Desktop Support 50 $73,807 $85,000 $100,000 $88,711 2.67%

Engineering 49 $90,000 $112,000 $130,000 $113,771 2.70%

Analytics 47 $76,000 $100,000 $130,000 $107,862 0.00%

Team Lead 45 $100,000 $120,000 $140,000 $121,385 1.23%

Training 43 $89,000 $100,000 $125,000 $103,884 2.15%

UNIX 40 $90,938 $122,500 $145,500 $121,567 2.78%

Technology changes rapidly and in-demand skills can quickly become superseded. In order to optimally manage continuing professional development activities, ICT professionals should maintain a detailed understanding of which skills are currently in demand across the workforce, and in which skill areas demand is expected to increase and decline over the coming two to five-year period.

Table 2 below is a summary of base salaries and annual salary movements for a comprehensive range of ICT skills to assist ICT professionals make an informed assessment of increasing and declining demand.

PAGE 21

Account Management 39 $82,000 $102,000 $125,000 $104,780 1.96%

Business Development 36 $69,500 $106,500 $127,300 $105,960 1.50%

Sharepoint 35 $70,000 $90,300 $110,000 $92,653 2.64%

VOIP/Telephony 35 $74,000 $90,000 $125,000 $100,026 2.32%

Production Management 31 $85,000 $100,000 $125,000 $107,742 1.23%

.NET 30 $78,200 $97,266 $105,000 $97,509 3.08%

Java/J2EE 28 $93,150 $103,500 $120,000 $111,794 2.13%

Business Intelligence 27 $70,000 $108,000 $130,000 $104,599 3.50%

iOS 25 $74,000 $90,300 $137,000 $104,453 0.00%

C/C++ 24 $97,500 $120,000 $145,500 $121,594 3.02%

Oracle 23 $86,000 $110,000 $125,000 $109,251 4.00%

RF/Wireless 23 $82,000 $90,000 $112,000 $98,250 2.78%

TCP/IP UML 22 $85,000 $109,500 $146,000 $118,136 2.41%

PHP 21 $72,000 $90,000 $109,000 $91,026 4.23%

UI/UX 20 $67,500 $96,000 $112,500 $94,389 0.00%

Android 19 $72,000 $97,000 $137,000 $104,779 0.00%

Modelling 18 $90,000 $102,500 $115,000 $104,651 2.15%

Sales 17 $90,000 $109,000 $153,000 $114,278 0.00%

Other skills 17 $85,000 $100,000 $117,500 $101,736 2.00%

Citrix 15 $69,000 $96,000 $128,000 $101,763 1.58%

ETL 15 $85,442 $96,500 $135,000 $109,000 0.68%

Perl 13 $135,000 $146,000 $160,000 $146,832 2.46%

Data Warehousing 12 $91,088 $109,000 $139,456 $115,507 5.00%

E-Commerce 12 $88,000 $101,000 $113,000 $104,667 2.24%

SCCM/SCOM 12 $81,500 $98,766 $124,000 $108,336 2.20%

Marketing 11 $66,500 $108,000 $148,000 $108,773 -

IdAM 10 $90,000 $113,100 $130,000 $111,120 0.00%

ASP 9 $66,000 $91,253 $97,000 $91,584 3.98%

MS Dynamics 7 $85,000 $90,000 $103,365 $90,972 -

SAP 6 $108,000 $111,000 $150,000 $126,167 -

Ruby on Rails 5 $110,000 $130,000 $150,000 $134,200 -

Social Media 5 $108,000 $130,000 $165,000 $141,800 -

SEO 4 - $85,000 - $88,250 -

Graphic Design 3 - - - $64,667 -

N

BASE SALARYANNUAL SALARY

MOVEMENT

LOWER QUARTILE MEDIAN UPPER QUARTILE MEAN MEDIAN

PAGE 22

TABLE 3 - TOP 10 SKILLS BY MEDIAN BASE SALARY

TABLE 4 - TOP 10 SKILLS BY MEDIAN ANNUAL SALARY MOVEMENT

MOST WIDELY HELD SKILLS

In our regular survey of ICT Professionals’ employment and remuneration we asked respondents to identify which skills they used in their current role from a list of technology and role-specific skills. Cloud services was the most commonly held skill among respondents, followed by system administration, Linux, information security and SQL. The high prevalence of these skills confirms their relevance across a wide range of roles.

HIGHEST PAYING SKILLS

The skill attracting the highest median base salary was Perl followed by Ruby on Rails, Social media and UNIX.

Rank SkillMedian

base salary

1 Perl $146,000

2 Ruby on Rails $130,000

3 Social media $130,000

4 UNIX $122,500

5 Team leader $120,000

6 C/C++ $120,000

7 Management $113,503

8 IdAM $113,100

9 Technical writing $112,000

10 Engineering $112,000

Rank SkillMedian

annual salary movement

1 Data warehousing 5.0%

2 PHP 4.2%

3 Oracle 4.0%

4 ASP 4.0%

5 Business intelligence 3.5%

6 .NET 3.1%

7 Python 3.0%

8 C/C++ 3.0%

9 Linux 2.8%

10 UNIX 2.8%

GREATEST GROWTH IN PAY FOR SKILLS

The skills attracting the highest wage growth over the past year were data warehousing followed by PHP, Oracle, ASP and business intelligence. The high rate of growth indicates that demand for these skills is increasing with employers offering more attractive remuneration to skilled staff. High-quality employees with skills in growth areas can be difficult to attract and the rapid rate of change in ICT exacerbates this issue.

PAGE 23

TABLE 5 - SKILLS IDENTIFIED AS MOST LIKELY TO EXPERIENCE INCREASED DEMAND*

TABLE 6 - SKILLS IDENTIFIED AS MOST LIKELY TO EXPERIENCE REDUCED DEMAND

TABLE 7 - SKILLS IDENTIFIED AS MOST AT RISK OF OFFSHORING OVER THE NEXT THREE YEARS*

Skill% of respondents who believe demand will

increase

ASP 88.9%

UI/UX 85.0%

IdAM 80.0%

PHP 76.2%

Modelling 73.7%

System architecture 72.2%

Sales 72.2%

Analytics 72.0%

Network design 71.4%

RF/Wireless 70.8%

Skill% of respondents who believe demand will

decrease

E-Commerce 16.7%

SCCM/SCOM 16.7%

MS Dynamics 14.3%

ETL 13.3%

Citrix 13.3%

Sharepoint 10.8%

Business development 10.5%

JAVA/J2EE 10.3%

VOIP/TELEPHONY 10.3%

Skill

% of respondents who believe skill is at risk of offshoring over the next

three years

E-Commerce 58.3%

Citrix 53.3%

Oracle 47.8%

Business intelligence 39.3%

Sales 33.3%

SAP 33.3%

Marketing 33.3%

Analytics 32.0%

System administration 32.0%

CHANGING DEMAND FOR SKILLS

Participants were also asked to rate how demand for the skills they employed in their current role would change over the next three years. Respondents identified ASP, UI/UX, IdAM, PHP and Modelling as the most likely to increase in demand. ICT professionals are in the best position to identify potential areas of growth in the profession as they are directly responsible for incorporating new technology into businesses. The ability to effectively manage the transition from older technology to newer technologies requires in-depth knowledge and may provide a competitive edge for ICT professionals that maintain a strong commitment to ongoing professional development.

SKILLS MOST LIKELY TO BE OFFSHORED

Offshoring is a serious issue in the ICT landscape at present, with many organisations opting to minimise short-term costs by outsourcing functions overseas. Survey respondents were asked about the skills they thought were most likely to be offshored over the next three years. Respondents identified E-Commerce as the skill most at risk from offshoring over the next three years followed by Citrix, Oracle and business intelligence. The trend of outsourcing raises concerns that some Australian businesses may not have the skilled workforce on hand locally to drive innovative business practices and ultimately this may negatively affect workforce development in the profession.

Respondents identified E-Commerce, SCCM/SCOM, MS Dynamics, ETL and Citrix as the skills expected to decline in demand. ICT professionals are keenly aware of areas of declining importance in the profession. As new technology is developed, older, less efficient or less productive technologies are gradually superseded. ICT professionals are directly responsible for incorporating new technology into businesses and removing older technology.

* Excludes skills with five or less respondents

* Excludes skills with five or less respondents

PAGE 24

GRADUATESWAGES

According to the latest Graduate Outcomes Survey, graduate wages rose marginally over the past year after a jump of over 9 per cent between 2015 and 2016. The latest data places the average ICT graduate wage at $60,000 after the completion of a Bachelor degree, slightly up on $59,900 the previous year but still an increase of over 9 per cent on the 2015 figure. Over the longer-term, graduate ICT wages have trended upwards, with annualised growth of around 2.5 per cent recorded over the past seven years.

Remuneration is holding against other study areas with the graduate salary for all study areas at $61,000 in 2018.

FIGURE 13 - UNDERGRADUATE MEDIAN FULL-TIME SALARIES 4 MONTHS AFTER COMPLETION OF DEGREE - COMPUTING AND INFORMATION SYSTEMS

Note: From 2016, the Australian Graduate Survey conducted by Graduate Careers Australia (GCA) was replaced by the Graduate Outcomes Survey as part of the QILT suite of surveys. The 2015 figure in this graph was brought forward from the GCA survey and this figure reflects the QILT definitions while the data pre-2015 does not. The new data series therefore begins in 2015.

$51,

000

$52,

500

$53,

000

$55,

000

$55,

000

$60,

000

$59,

900

$60,

000

$46,000

$48,000

$50,000

$52,000

$54,000

$56,000

$58,000

$60,000

$62,000

2011 2012 2013 2014 2015 2016 2017 2018

PAGE 25

FIGURE 14 - DOMESTIC ENROLMENTS IN IT DEGREES23

FIGURE 15 - DOMESTIC COMPLETIONS OF IT DEGREES24

GRADUATE ENROLMENTS AND COMPLETIONS

The number of domestic undergraduate enrolments in IT degrees has risen steadily since 2009, with growth accelerating in recent years. Completions have followed a similar trend overall holding steady in 2017. This growth has come after almost a decade of decline, which followed the burst of the dot-com bubble in 2001. Post-graduate enrolments are also coming off a low point in 2009 with post-graduate completions increasing from a low in 2010 and holding steady to 2017.

While the rate of enrolments is increasing steadily, there is

EMPLOYMENT FOR GRADUATES

Employment prospects for IT graduates remain lukewarm with many IT graduates struggling to find full-time work following graduation and a significant number working in areas not related to their qualification. 73.2 per cent of undergraduates were in full-time work four months after graduation. Computing and information systems was one of the areas with the lowest proportion of graduates employed with an overall employment rate of 81.1 per cent per cent.25

still significant room for growth, as ICT roles become more pervasive across the economy. While this has encouraged more school leavers to choose ICT degrees when entering tertiary study, attrition is higher for IT degrees than for any other field of education and this keeps completions down.22

While opportunities for ICT professionals will be abundant over the years ahead, skill and experience will be major factors in determining the prospects available to each professional. In-demand skills change rapidly and students will need to be well-informed and up-to-date on the needs of the workforce, tailoring their training and resumes to reflect in-demand skills, upskilling in areas of increasing demand and building a compelling portfolio to enhance their employability.

Employers have also suggested that they struggle to find IT graduates with suitable skills suggesting a mismatch between what is being taught in IT degrees and the needs of industry. A LinkedIn study found that the skills most in demand from those moving jobs included relationship management, customer service and contract negotiations.26 Graduates would be well-advised to consider avenues for gaining experience and doing training in these areas to maximise their employability.

Graduates would also be well advised to pursue training and further development in the skill areas most in demand including ASP, UI/UX, IdAM and PHP.

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PAGE 26

GENDERWomen continue to be seriously underrepresented in the ICT workforce. Females account for only 25 per cent of those with post-secondary ICT qualifications in Australia.27 Female participation in the ICT labour force is also lower than across other occupations with a participation rate of only 29 per cent of ICT workers compared to 44 per cent across all professional occupations.28

GENDER PAY GAP

The latest WGEA Gender Equality data shows a gender pay gap of 18.5 per cent in the Information Media and Telecommunications industry.29 Deloitte figures show that average earnings continue to be lower for women in the ICT workforce than for men, with an average pay gap of around 18.0 per cent.30

Female ICT graduates in full-time roles at both the Bachelor and Doctorate level are less likely to earn an income in the highest wage bracket ($104,00 and over). At the Bachelor level, only 17 per cent of females reported earnings in the top pay bracket compared to 29 per cent of males, and at the Doctorate level, 31 per cent of females reported earning in the top pay bracket compared to 42 per cent of males.31

Our survey confirmed a gender pay gap with male respondents’ base salaries averaging $107,035 while female respondents’ base salaries averaged $88,925, indicating a pay differential of 20.4 per cent.

DISCRIMINATION

43.8 per cent of female respondents said they had experienced bias or discrimination on the basis of gender in the previous three years. 10.4 per cent of respondents had experienced discrimination on the basis of age - 12.5 per cent of female respondents and 10.2 per cent of male respondents. 6.9 per cent of respondents reported having experienced racial discrimination.

Form of discrimination

Age Disability Gender Race ReligionSexual

identity

None of the above

Male 10.2% 3.8% 3.2% 7.0% 1.9% 2.5% 77.7%

Female 12.5% 6.3% 43.8% 6.3% 0.0% 6.3% 43.8%

All respondents 10.4% 4.0% 6.9% 6.9% 1.7% 2.9% 74.6%

SEXUAL HARASSMENT

47.1 per cent of female respondents and 6.5 per cent of male respondents reported having been sexually harassed in their careers.

DIVERSITY POLICY AND STRATEGY

Respondents reported 59.8 per cent of employers had formal policies in place to promote diversity and 69.8 per cent had policies to deal with discrimination. While these results appear positive, 25.1 per cent of respondents also said their employer did not have strategies in place to actually implement those policies.

TABLE 8 - FORMS OF DISCRIMINATION EXPERIENCED IN THE WORKPLACE OVER THE LAST THREE YEARS

PAGE 27

SATISFACTION LEVELS AND SALARY EXPECTATIONSThe survey asked respondents how satisfied they were with their current level of remuneration and role. Only 41.2 per cent of respondents reported being satisfied or very satisfied with their current remuneration, with 26.7 per cent reporting being dissatisfied or very dissatisfied. 54.5 per cent of respondents reported being satisfied or very satisfied with their current role, with 20.3 per cent reporting being dissatisfied or very dissatisfied.

FIGURE 16 - LEVEL OF SATISFACTION WITH CURRENT REMUNERATION AND ROLE (%)

FIGURE 17 - EXPECTATIONS OF WAGE GROWTH OVER NEXT 12 MONTHS (%)

The survey also asked ICT professionals to report their expectations for growth in base salaries over the coming 12 months. Respondents were generally optimistic in their expectations as to future wage growth, with 44.1 per cent predicting an increase of over 2.0 per cent over the coming year. However, 28.7 per cent reported that they expected wage growth of less than 1 per cent, showing the level of uncertainty and variability around wage expectations in the IT profession.

RoleRemuneration

6.4%

34.8% 32.1%

19.3%

7.5%9.1%

45.5%

25.1%

12.8%7.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Very satisfied Satisfied Unsure Dissatisfied Very dissatisfied

Resp

onse

%

19.0% 9.7% 27.2% 21.5% 22.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

None Less than 1% Between 1% and 2% Between 2% and 3% Greater than 3%

Response %

PAGE 28

WORKPLACE ISSUES

WORKING HOURS AND OVERTIMEWORKING HOURS

Respondents reported working an average of 41.4 hours per week, with an average of 3.1 hours of overtime. Overtime was more prevalent in the private sector where average reported additional hours were 3.2 hours compared with 2.2 hours in the public sector.

FIGURE 18 - MEAN HOURS WORKED AND OVERTIME PER WEEK BY SECTOR

41.6

40.840.7

41.43.2

2.2

2.83.1

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

40.0

40.2

40.4

40.6

40.8

41.0

41.2

41.4

41.6

41.8

Private Sector Public Sector Other Sectors All Respondents

Ave

rage

wee

kly

over

tim

e ho

urs

Hou

rs w

orke

d pe

r w

eek

Hours worked per week Average hours overtime each week

PAGE 29

FIGURE 19 - METHOD OF OVERTIME COMPENSATION BY SECTOR OF EMPLOYMENT (%)

OVERTIME

Overtime and the way employees are compensated for additional work forms an important part of an employee’s remuneration structure.

Overall, a concerning 47.9 per cent of respondents reported receiving no compensation for overtime. Non-payment for additional hours was more prevalent in the private sector.

0.0%

27.6%

37.9%

34.5%

6.9%

9.8%

28.7%

52.3%

5.6%

13.6%

30.5%

47.9%

0% 10% 20% 30% 40% 50% 60%

Overtime built intobase salary

Monetary paymentat hourly rate

Time off in lieuof payment

No compensation received

All respondents Private sector

Response %

Public sector

PAGE 30

FIGURE 20 - TYPES OF TRAINING UNDERTAKEN BY ICT PROFESSIONALS OVER THE LAST 12 MONTHS (%)

FIGURE 21 - MEAN PROPORTION OF TRAINING PROVIDED BY EMPLOYER (%)

PROFESSIONAL DEVELOPMENTRespondents to the survey had undertaken predominantly ICT-related training in the previous 12 months.

Of those who had undertaken professional development activities, around half had training provided by their employer. The level of employer-provided training was higher among public sector respondents at 58.0 per cent, compared with only 45.7 per cent in the private sector. While the high proportion of ICT professionals undertaking CPD is a positive sign, there are opportunities for additional employer support with up-to-date ICT skills potentially making a significant difference to an organisation’s efficiency and bottom line.

45.7%58.0% 48.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Private sector Public sector All respondents

Response %

Response %

12.2%

22.6%

29.1%

39.9%

55.7%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Training in anon-ICT discipline

No training undertaken

Business-related

Personal development

ICT-related

PAGE 31

TABLE 9 - RANKING OF WORKPLACE PRIORITIES

FIGURE 22 - ISSUES OF IMPORTANCE IN THE WORKPLACE OVER PREVIOUS 12 MONTHS (%)

Survey participants were asked to rank their top ten workplace priorities listed below in order of how important they were to them. On average, respondents identified work/life balance as their highest workplace priority, followed by a pay increase, professional development opportunities and job security. The 4th to 7th priorities were all ranked similarly and 9th and 10th priorities were ranked equally.

ICT professionals are also uniquely placed to understand the issues likely to affect their workplace over the coming year that may have a major impact on employers and the wider economy.

When asked about the anticipated importance of several key issues over the coming year, ICT professionals identified data breaches/security/protection as the most important issue with 82.6 per cent indicating that it was likely to be an important or very important issue in their workplace.

Organisational data management standards came in second with 80.0 per cent rating the issue as important or very important, followed by matching the skills of IT staff to organisational requirements at 74.6 per cent.

Ranking Priority

1 Work/life balance

2 A pay increase

3 Professional development opportunities

4 Job security

5 Effective management

6 Improved workplace culture

7 Flexible working arrangements

8 Promotion

9/10 Challenging workloads

9/10 Working close to home

STAFF MORALE, WORKER FATIGUE AND PRODUCTIVITY46.8 per cent of respondents said that staff morale had declined in their organisation over the previous year and 52.7 per cent reported that worker fatigue had increased. 22.0 per cent said overall productivity in their workplace had declined over the previous year.

TABLE 10 - PERCEPTION OF CHANGES IN WORKFORCE AND ORGANISATION

DecreasedStayed the

sameIncreased

% Response % Response % Response

Staff morale 46.8 41.9 11.3

Worker fatigue 3.2 44.1 52.7

Overall productivity 22.0 60.2 17.7

INDIVIDUAL AND WORKPLACE PRIORITIES

38.3% 15.3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Data breaches/data security/data protection

Organisational data management - standards. governance, policies, etc.

IT workforce hiring and retention - ensuring adequate staffing, dealing

with talent shortages, etc.

Matching the skills of IT staff to organisational requirements

Business intelligence and analytics

E-learning and online educationImportant

47.0%Important

49.7%Important

37.3%Important

41.1%Important

31.5%Important

Very Important

46.4%Not

Important

30.6%Not

Important

25.4%Not

Important

36.2%Not

Important

20.0%Not

Important

17.4%Not

Important

22.4%Very

Important

24.9%Very

Important

26.5%Very

Important

38.9%Very

Important

51.1%Very

Important

Response %

PAGE 32

FIGURE 23 - APPROACH TO EMPLOYMENT IN THEIR PROFESSION (%)

FIGURE 24 - RESPONSE TO QUESTION, DO YOU BELIEVE THE ICT PROFESSION OFFERS LONG-TERM CAREER PATHS FOR ICT PROFESSIONALS? (%)

FUTURE PROSPECTS AND VALUE TO ORGANISATIONFUTURE PROSPECTS

When asked about their approach to employment in their profession, 19.3 per cent of respondents were concerned about future opportunities, 22.5 per cent expected more of the same, while 31.6 per cent were taking a wait-and-see approach to future prospects. Only 23.5 per cent reported being upbeat about future prospects in the profession.

LONG-TERM PROSPECTS

When asked about their long-term prospects in ICT, 74.2 per cent reported that they believed the profession provided a long-term career path, compared with 25.8 per cent who did not see a long-term future in ICT.

19.3%

22.5%

23.5%

31.6%

3.2%

Concerned about future opportunities

More of the same

Upbeat about future prospects

None of the above

Taking a wait and see approach

No25.8%

Yes74.2%

PAGE 33

FIGURE 25 - CHANGE IN ICT JOB OPPORTUNITIES OVER THE NEXT 12 MONTHS (%)

FIGURE 26 - CHANGE IN DECISION-MAKER OPPORTUNITIES OVER THE NEXT 12 MONTHS (%)

FIGURE 27 - EMPLOYER PERCEPTIONS OF CAPACITY OF ICT PROFESSIONALS TO DRIVE INCREASED PROFITS, INNOVATION AND EFFICIENCIES (%)

OPPORTUNITIES

A total of 47.3 per cent of respondents expected an increase in opportunities for ICT professionals over the next year, while only 28.0 per cent expected an increase in opportunities in decision-maker roles. As the profession grows there is some suggestion that those working in ICT are hitting a ceiling that prevents them from moving into senior, management or leadership roles.

12.9% 39.8% 47.3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Decrease Stay the same Increase

Response %

11.3% 60.8% 28.0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Decrease Stay the same Increase

Response %

VALUE TO ORGANISATION

Participants were also asked the extent to which they felt their employers recognised the contribution that an ICT professional could make towards driving profitability, innovation and efficiencies. Overall, ICT professionals believed that their employers value the ICT profession, generally viewing ICT professionals as a source of efficiency, innovation and profit. There is however potential for employers to better utilise their ICT capability with still a significant proportion not sufficiently understanding the extent to which ICT professionals can assist their organisations in these areas.

• 21.0 per cent of respondents believe their employers do not understand or barely understand the ability of ICT professionals to drive innovation.

• 24.2 per cent of respondents believe their employers do not understand or barely understand the ability of ICT professionals to drive profit.

• 19.4 per cent of respondents believe their employers do not understand or barely understand the ability of ICT professionals to drive efficiencies.

4.3%

4.8%

6.5%

15.1%

16.1%

17.7%

34.4%

28.5%

28.5%

26.9%

26.9%

26.9%

19.4%

23.7%

20.4%

Response %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Drive efficiencies

Drive innovation

Improve theorganisation’s

bottom line

Do not understand

Barely understand

Somewhat understand

Mostly understand

Greatly understand

PAGE 34

INDEPENDENT CONTRACTORS

An ongoing trend in the engagement of ICT professionals is the number appointed under independent contractor arrangements. Employers of ICT professionals are making greater use of such arrangements as a means of meeting peak workloads or to engage contract professionals for specific projects or tasks.

The Australian Bureau of Statistics estimates that up to 20 per cent of the workforce is now engaged in non-standard work arrangements with professionals operating as independent contractors or consultants among the fastest growing group.

Ultimately, the hourly rate charged by independent contractors depends on the market for the service provided and there is no substitute for specific knowledge of the particular industry and the value of the service being offered to a client, but these rates can be used as a benchmark to ensure that contractors don’t undercharge for their services.

These recommended hourly rates should be read in conjunction with Professionals Australia’s Standard Terms of Engagement and Professionals Australia’s Guide to Writing Contracts for Independent Contractors and Consultants. Both documents take account of important issues arising from changes to Personal Services Income (PSI) rules effective July 2000. The PSI rules potentially impact contractors and consultants engaged on an hourly basis. These documents are available to members from Professionals Australia’s website at: www.professionalsaustralia.org.au/contractors-consultants/

The hourly rates for ICT contractors take into account the conditions of employment which apply to employee ICT professionals, as professionals operating under independent contractor arrangements must meet these costs themselves.

ICT Professionals engaged as employees have access to the Australian Industrial Relations Commission and receive annual leave, sick leave, paid public holidays, long service leave, superannuation, jury leave, compassionate leave, family leave, professional development and retrenchment/ redundancy provisions.

Independent contractors may be engaged on an hourly basis and generally do not have access to these provisions. The ICT contractor must therefore take such provisions into account when determining the hourly fee to be charged. Based on a 38-hour week, the hourly fee is calculated using a 1980 hour year (i.e. 38 hours by 52.1 weeks) and deducting from the year the following factors:

Item Value Value in Hours

Public Holidays 12 days 92Annual Leave 20 days 152

Long Service Leave 4.3 days 33Sick Leave 10 days 76

Salary Continuance 3% 60Superannuation 10% 198

Professional Indemnity Insurance 3% 60Miscellaneous Leave 3 days 23

Professional Development 5 days 38Termination/Redundancy 5 days 38

Total 770 hours

TABLE 11 - VALUE OF ITEMS INDEPENDENT CONTRACTORS DO NOT RECEIVE

PAGE 35

Thus the hourly rate should be calculated on the basis of about 1210 hours (1980 - 770).

Any travel costs and workers’ compensation would be on top of these rates, and it may be necessary to factor in an additional charge to cover legal and accounting fees. Care should also be taken to allow for professional indemnity insurance premiums. ASIC fees may also need to be covered depending on the particular business entity or structure the consultant or contractor has in place.

If the ICT contractor is engaged on a short-term basis, a further factor should be included to allow for the time and overheads involved in seeking contracts. A factor of 20 per cent would not be unreasonable for this purpose. The hourly rate should then be based on 1000 hours. Short-term contracts are considered to be those which last for less than 12 months.

Using the formula described here, an ICT contractor seeking a salary equivalent of say $100,000 per annum would calculate the hourly fee as follows:

Short-term contract $100,000p.a. / 1000 hours = $100.00 p/h

Long-term contract $100,000p.a. / 1210 hours = $82.65 p/h

FIGURE 28 - PROPORTIONAL VALUE OF COMPONENTS IN A FULL-TIME EMPLOYMENT CONTRACT

Superannuation10%

PublicHolidays

4%

Annual Leave

8%Long Service

Leave

2%

Sick Leave4%

Salary Continuance

3%

Professional idemnity insurance

3%

Miscellaneous Leave

1% Professional Development

2%Termination / Redundancy

2%

Base salary61%

PAGE 36

RECOMMENDED HOURLY RATES

Based on full-time ICT Professional remuneration identified in this survey and the methodology outlined in this section, Professionals Australia recommends rates in the following ranges for short-term and long-term contracts if contractors wish to be remunerated commensurate with their full-time employed peers at each responsibility level. (These rates are derived using the methodology set out in this section and from the data set out in Table 1.)

CONTRACT AGENCY RATES

If the independent contractor is engaged through a contractor agency, some components such as workers’ compensation/disability insurance and superannuation contributions would normally be paid for by the agency. These components would be removed from calculations.

A typical calculation made by a contract agency might see the annualised hours rise to around 1600 after the removal of superannuation from the calculation as it is provided by the agency, so that the hourly rate for an equivalent $100,000 annual base salary would be:

$100,000p.a. / 1600 hours = $62.50 per hour

TABLE 12 - CONTRACTOR HOURLY RATES CHARGED BY DURATION OF CONTRACT AND RESPONSIBILITY LEVEL (DERIVED FROM FULL-TIME EQUIVALENT SALARIES)

Note: Sample size precludes deriving rates Above Level 5/SFIA Level 7.

Long-term Short-term

Recommended hourly rate Recommended hourly rate

NLower

quartileMedian

Upper quartile

Mean NLower

quartileMedian

Upper quartile

Mean

Level 1/ SFIA Level 3

18 $42.15 $53.72 $60.33 $53.05 18 $51.00 $65.00 $73.00 $64.19

Level 2/ SFIA Level 4

63 $61.16 $71.90 $84.30 $72.79 63 $74.00 $87.00 $102.00 $88.07

Level 3/ SFIA Level 5

70 $78.51 $90.91 $107.44 $94.25 70 $95.00 $110.00 $130.00 $114.04

Level 4/ SFIA Level 6

32 $89.16 $112.81 $121.49 $108.39 32 $107.89 $136.50 $147.00 $131.15

Level 5/ SFIA Level 7

10 $99.17 $138.43 $157.85 $131.07 10 $120.00 $167.50 $191.00 $158.60

All Respondents

197 $67.77 $82.64 $103.31 $87.73 197 $82.00 $100.00 $125.00 $106.15

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INDIVIDUAL EMPLOYMENT CONTRACTS

The market rates information in this survey report provides a snapshot of remuneration for scientists and the current science employment market. The information contained in this report is a good starting point for those looking to negotiate or renegotiate their package and understand their position in the market. Where individuals are engaged under an individual employment contract, the remuneration information contained in this report can provide a basis for negotiating a base salary and total remuneration package to be included in the contract. The rates set out in the report are a reliable snapshot of market rates and salary movements across the profession over the previous 12 months.

EMPLOYMENT CONDITIONS

Employment conditions to be included and referred to in a contract can be negotiated and agreed so long as employers observe the National Employment Standards (NES) or the relevant underpinning Award which must apply (see below). Some enterprise agreements also provide for employees to enter into individual agreement/contracts in relation to some aspects of their employment so in these cases the employment conditions set out in the enterprise agreement underpin the employment conditions set out in the employment contract.

MARKET RATES - A BENCHMARKING TOOL FOR SETTING FAIR REMUNERATION

NATIONAL EMPLOYMENT STANDARDS

The NES are 10 minimum employment entitlements that must be provided to all employees. The national minimum wage and the NES make up the minimum entitlements for employees in Australia. An Award, employment contract, enterprise agreement or other registered agreement can’t provide for conditions that are less than the national minimum wage or the NES. They cannot exclude the NES.

The 10 minimum entitlements of the NES are:

• maximum weekly hours;

• requests for flexible working arrangements;

• parental leave and related entitlements;

• annual leave;

• personal/carer’s leave, compassionate leave and unpaid family and domestic violence leave;

• community service leave;

• long service leave;

• public holidays;

• notice of termination and redundancy pay; and

• Fair Work Information Statement.

All full-time and part-time employees in the national workplace relations system are covered by the NES regardless of the award, registered agreement or employment contract that applies. For further information on the National Employment Standards and their application, visit the Employee entitlements section of the Fair Work Ombudsman’s website at https://www.fairwork.gov.au/employee-entitlements

MODERN AWARDS

Professional employees are covered by a range of Modern Awards and particular Awards underpin Enterprise Agreements. The major Award covering Professional Engineers in the Private sector is the Professional Employees Award 2010.

The major provisions of a modern award will most commonly relate to:

• rates of pay;

• classification levels;

• working hours and public holidays;

• overtime and penalty rates;

• allowances;

• annual leave;

• personal leave;

• rest breaks;

• engagement and termination of employment;

• superannuation; and

• dispute settlement procedures.

For a list of relevant Awards and links to the Awards, visit the Modern Awards section on the Professionals Australia website at http://www.professionalsaustralia.org.au/support/rights-wages-conditions/modern-awards

PAGE 38

ABOUT THE SURVEYThe 2019 ICT Professionals Employment and Remuneration Survey was conducted by Professionals Australia in June/July 2019. The survey is a continuation of a series conducted by the Association since 1993.

Participants were recruited from Professionals Australia’s IT-based membership using a combination of direct e-mail, promotion through regular newsletters, and social media. Non-members were also advertised to using social media. Only participants that identified as being employed as an ICT professional, based in Australia and employed full-time were included in the analyses above.

The survey asks a range of questions regarding an individual’s employment, remuneration, and experiences within the ICT Profession. Participants are not required to answer all questions and their responses are included for all analyses where they provided data.

In total, 413 questionnaires were submitted by individuals.

The findings of this report are based on a combination of this survey data and data from a range of other sources.

METHODOLOGY

Base salary Participants were asked to provide both their base salary and an hourly rate of pay. Where a participant did not provide a base salary, but did provide an hourly rate, this was used in conjunction with their reported hours worked each not including overtime to determine an equivalent base salary.

Annual salary movement Annual salary movements were calculated by taking the percentage change from a participant’s annual base salary 12 months ago to their annual base salary at the time of the survey. The calculation is only performed for participants indicating they had not received a promotion or changed employers in the last 12 months. The calculation was also not performed for individuals with less than 1 year of experience.

Statistics used For the purposes of salary analysis, the following statistics were used:

• N: The number of observations recorded for each category. A result of SNR (Sample Not Representative) is given for categories below the reporting threshold;

• Lower quartile (25th percentile): The value below which 25 per cent of observations were recorded. Not reported where N is less than 5;

• Median (50th percentile): The value below which 50 per cent of observations were recorded. Not reported where N is less than 4;

• Upper quartile (75th percentile): The value below which 75 per cent of observations were recorded. Not reported where N is less than 5;

• Mean: The sum of individual salary values divided by the number of observations;

• Response per cent: Proportion of the survey sample represented by the number of observations in a given category.

Statistics for Base Salary and Annual Salary Movement are calculated separately for each of the sample respondents, and then ranked. The median is not, therefore, a reflection of the middle-ranked respondent across all categories, but rather, the middle value of the particular component when all

values of that component are ranked. As a consequence, the component statistics will not add up to the value given by the overall statistic.

Where a significant difference exists between the value of the mean and the median, this will indicate the following:

• Where the mean is higher than the median, a number of high values were recorded, sufficient to skew the mean upwards away from the median;

• Conversely, if the mean is lower than the median, a number of low values were recorded, sufficient to skew the mean downwards, away from the median.

If the mean and median are relatively close, the distribution was approximately normally distributed.

PAGE 39PAGE 39

ENDNOTES1. Cormann, M. in Labor vows to abolish

government staffing cap, cut contractor spend. Available at https://www.smh.com.au/politics/federal/labor-vows-to-abolish-government-staffing-cap-cut-contractor-spend-20180808-p4zw7l.html.

2. Deloitte Access Economics (2019). Australia’s Digital Pulse, p.2.

3. The report notes that this 9.1 per cent increase is higher than previous annual growth and the result should be treated with caution.

4. Department of Employment, Internet Vacancy Index – March 2019.

5. Department of Employment, Internet Vacancy Index – March 2019.

6. Grattan Institute (2016). Mapping Australian higher education, pp.94-95.

7. ibid, p.94.

8. ibid, p.95.

9. ibid, p.95.

10. ibid, p.95.

11. ibid, p.95.

12. ibid, p.93.

13. ibid, p.93.

14. ABS Catalogue 6401.0, June 2019 (All groups).

15. ABS Catalogue 6345.0, June 2019 (Trend).

16. Comprised of the sub-divisions of Computer system design and related services, Telecommunications services, Internet service providers, web search portals and data processing services and the rest of Information media and telecommunications.

17. Deloitte Access Economics (2019). Australia’s Digital Pulse, pp.52,53.

18. Deloitte Access Economics (2019). Australia’s Digital Pulse, p.49.

19. Deloitte Access Economics (2019). Australia’s Digital Pulse, pp.52,53.

20. 2019 Professionals Australia ICT Employment and Remuneration Report.

21. 2019 Professionals Australia ICT Employment and Remuneration Report.

22. Grattan Institute (2016), p.92.

23. Department of Education u-Cube (2017).

24. Department of Education u-Cube (2017.

25. Grattan Institute (2018). Mapping Australian higher education, pp.145, 146.

26. Grattan Institute (2016), p.93.

27. Office of the Chief Scientist (2016). Australia’s STEM Workforce, p.13.

28. Deloitte Access Economics (2019). Australia’s Digital Pulse, p.8.

29. WGEA Gender Equality Agency, May 2019. Australia’s gender pay gap statistics. Available at https://www.wgea.gov.au/data/fact-sheets/australias-gender-pay-gap-statistics.

30. Deloitte Access Economics (2019). Australia’s Digital Pulse, p.2.

31. Office of the Chief Scientist (2016). Australia’s STEM Workforce, p.132.

Professionals Australia conducts a range of salary surveys and has available reports for Professional Engineers, Scientists and Pharmacists. You can download summary reports or purchase extended reports for Engineers and Scientists at http://www.professionalsaustralia.org.au/financial-edge/salary-survey-reports

OTHER REMUNERATION REPORTS

PAGE 40

SKILLS FRAMEWORK FOR THE INFORMATION AGE (SFIA)

SFIA LEVEL 3

Autonomy – Works under general direction. Uses discretion in identifying and resolving complex problems and assignments. Usually receives specific instructions and has work reviewed at frequent milestones. Determines when issues should be escalated to a higher level.

Influence – Interacts with and influences department/project team members. Has working level contact with customers and suppliers. In predictable and structured areas may supervise others. Makes decisions which may impact on the work assigned to individuals or phases of projects.

Complexity – Performs a broad range of work, sometimes complex and non-routine, in a variety of environments. Applies methodical approach to problem definition and resolution.

Business skills – Understands and uses appropriate methods, tools and applications. Demonstrates an analytical and systematic approach to problem solving. Takes the initiative in identifying and negotiating appropriate personal development opportunities. Demonstrates effective communication skills. Contributes fully to the work of teams. Plans, schedules and monitors own work (and that of others where applicable) competently within limited deadlines and according to relevant legislation and procedures. Absorbs and applies technical information. Works to required standards. Appreciates the wider field of information systems, and how own role relates to other roles and to the business of the employer or client.

SFIA LEVEL 4 Autonomy – Works under general direction within a clear framework of accountability. Exercises substantial personal responsibility and autonomy. Plans own work to meet given objectives and processes.

Influence – Influences team and specialist peers internally. Influences customers at account level and suppliers. Has some responsibility for the work of others and for the allocation of resources? Participates in external activities related to own specialism. Makes decisions which influence the success of projects and team objectives.

Complexity – Performs a broad range of complex technical or professional work activities, in a variety of contexts. Investigates, defines and resolves complex problems.

RESPONSIBILITY LEVEL DEFINITIONS

Business skills – Selects appropriately from applicable standards, methods, tools and applications. Demonstrates an analytical and systematic approach to problem solving. Communicates fluently orally and in writing, and can present complex technical information to both technical and non-technical audiences. Facilitates collaboration between stakeholders who share common objectives. Plans, schedules and monitors work to meet time and quality targets and in accordance with relevant legislation and procedures. Rapidly absorbs new technical information and applies it effectively. Has a good appreciation of the wider field of information systems, their use in relevant employment areas and how they relate to the business activities of the employer or client. Maintains an awareness of developing technologies and their application and takes some responsibility for personal development.

SFIA LEVEL 5 Autonomy – Works under broad direction. Work is often self-initiated. Is fully accountable for meeting allocated technical and/or project/ supervisory objectives. Establishes milestones and has a significant role in the delegation of responsibilities.

Influence – Influences organisation, customers, suppliers, partners and peers on the contribution of own specialism. Builds appropriate and effective business relationships. Makes decisions which impact the success of assigned projects i.e. results, deadlines and budget. Has significant influence over the allocation and management of resources appropriate to given assignments.

Complexity – Performs an extensive range and variety of complex technical and/or professional work activities. Undertakes work which requires the application of fundamental principles in a wide and often unpredictable range of contexts. Understands the relationship between own specialism and wider customer/organisational requirements.

Business skills – Advises on the available standards, methods, tools and applications relevant to own specialism and can make appropriate choices from alternatives. Analyses, designs, plans, executes and evaluates work to time, cost and quality targets. Assesses and evaluates risk. Communicates effectively, both formally and informally. Demonstrates leadership. Facilitates collaboration between stakeholders who have diverse objectives. Understands the relevance of own area of responsibility/specialism to the employing organisation. Takes customer requirements into account when making proposals. Takes initiative to keep skills up to date. Mentors colleagues. Maintains an awareness of developments in the industry. Analyses requirements and advises on scope and options for continuous operational improvement. Demonstrates creativity and innovation in applying solutions for the benefit of the customer/stakeholder. Takes account of relevant legislation.

SFIA LEVEL 6 Autonomy – Has defined authority and responsibility for a significant area of work, including technical, financial and quality aspects. Establishes organisational objectives and delegates responsibilities. Is accountable for actions and decisions taken by self and subordinates.

Influence – Influences policy formation on the contribution of own specialism to business objectives. Influences a significant part of own organisation. Develops influential relationships with internal and external stakeholders at senior management level. Makes decisions which impact the work of employing organisations, achievement of organisational objectives and financial performance.

Complexity – Performs highly complex work activities covering technical, financial and quality aspects. Contributes to the formulation and implementation of IT strategy. Creatively applies a wide range of technical and/or management principles.

Business skills – Absorbs complex technical information and communicates effectively at all levels to both technical and non- technical audiences. Assesses and evaluates risk. Understands the implications of new technologies. Demonstrates clear leadership and the ability to influence and persuade. Has a broad understanding of all aspects of IT and deep understanding of own specialism(s)? Understands and communicates the role and impact of IT in the employing organisation and promotes compliance with relevant legislation. Takes the initiative to keep both own and subordinates’ skills up to date and to maintain an awareness of developments in the IT industry.

SFIA LEVEL 7 Autonomy – Has authority and responsibility for all aspects of a significant area of work, including policy formation and application. Is fully accountable for actions taken and decisions made, both by self and subordinates.

Influence – Makes decisions critical to organisational success. Influences developments within the IT industry at the highest levels. Advances the knowledge and/or exploitation of IT within one or more organisations. Develops long-term strategic relationships with customers, partners, industry leaders and government.

Complexity – Leads on the formulation and implementation of strategy. Applies the highest level of management and leadership skills. Has a deep understanding of the IT industry and the implications of emerging technologies for the wider business environment.

Business skills – Has a full range of strategic management and leadership skills. Understands, explains and presents complex technical ideas to both technical and non-technical audiences at all levels up to the highest in a persuasive and convincing manner. Has a broad and deep IT knowledge coupled with equivalent knowledge of the activities of those businesses and other organisations that employ IT. Communicates the potential impact of emerging technologies on organisations and individuals and assesses the risks of using or not using such technologies. Assesses the impact of legislation, and actively promotes compliance. Takes the initiative to keep both own and subordinates’ skills up to date and to maintain an awareness of developments in IT.

PAGE 41

PROFESSIONAL EMPLOYEES AWARD 2010 LEVEL STRUCTURE

AWARD LEVEL 1

Graduate information technology employee

(a) An employee at this level undertakes initial professional tasks of limited scope and complexity, such as minor phases of broader assignments, in office, plant, field or laboratory work.

(b) Under supervision from higher level professional information technology employees as to method of approach and requirements, the employee performs normal professional work and exercises individual judgment and initiative in the application of principles, techniques and methods.

(c) In assisting more senior professional information technology employees by carrying out tasks requiring accuracy and adherence to prescribed methods of professional information technology analysis, design or computation, the employee draws upon advanced techniques and methods learned during and after the undergraduate course.

(d) Training, development and experience using a variety of standard procedures, enable the employee to develop increasing professional judgment and apply it progressively to more difficult tasks at Level 2.

(e) Decisions are related to tasks performed, relying upon precedent or defined procedures for guidance. Recommendations are related to solution of problems in connection to the tasks performed.

(f) Work is reviewed by higher level professional information technology employees for validity, adequacy, methods and procedures. With professional development and experience, work receives less review, and the employee progressively exercises more individual judgment until the level of competence at Level 2 is achieved.

(g) The employee may assign and check work of technical staff assigned to work on a common project.

AWARD LEVEL 2

Following development, the experienced professional plans and conducts professional work without detailed supervision but with guidance on unusual features and is usually engaged on more responsible assignments requiring substantial professional experience.

AWARD LEVEL 3 (a) An employee at this level performs duties requiring the application of mature professional knowledge. With scope for individual accomplishment and coordination of more difficult assignments, the employee deals with problems for which it is necessary to modify established guides and devise new approaches.

(b) The employee may make some original contribution or apply new professional approaches and techniques to the design or development of equipment or products.

(c) Recommendations may be reviewed for soundness of judgement but are usually regarded as technically accurate and feasible. The employee makes responsible decisions on matters assigned, including the establishment of professional standards and procedures. The employee consults, recommends and advises in specialty areas.

(d) Work is carried out within broad guidelines requiring conformity with overall objectives, relative priorities and necessary cooperation with other units. Informed professional guidance may be available.

(e) The employee outlines and assigns work, reviews it for technical accuracy and adequacy, and may plan, direct, coordinate and supervise the work of other professional and technical staff.

AWARD LEVEL 4

(a) An employee at this level performs professional work involving considerable independence in approach, demanding a considerable degree of originality, ingenuity and judgement, and knowledge of more than one field of, or expertise (for example, acts as their organisation’s technical reference authority) in a particular field of professional information technology field.

(b) An employee at this level:

(i) initiates or participates in short or long range planning and makes independent decisions on professional information technology policies and procedures within an overall program;

(ii) gives technical advice to management and operating departments;

(iii) may take detailed technical responsibility for product development and provision of specialised professional information technology systems, facilities and functions;

(iv) coordinates work programs; and

(v) directs or advises on the use of equipment and materials.

(c) An employee at this level makes responsible decisions not usually subject to technical review, decides courses of action necessary to expedite the successful accomplishment of assigned projects, and may make recommendations involving large sums or long-range objectives.

(d) Duties are assigned only in terms of broad objectives, and are reviewed for policy, soundness of approach, accomplishment and general effectiveness.

(e) The employee supervises a group or groups including professionals and other staff, or exercises authority and technical control over a group of professional staff. In both instances, the employee is engaged in complex professional information technology applications.

AWARD LEVEL 5 (a) An employee at this level usually responsible for an information technology administrative function, directing several professional and other groups engaged in interrelated information technology responsibilities, or as an information technology consultant. Achieving recognition as an authority in a field of major importance to the organisation.

(b) An employee independently conceives programs and problems to be investigated and participates in discussions determining basic operating policies, devising ways of reaching program objectives in the most economical manner and of meeting any unusual conditions affecting work progress.

(c) The employee makes responsible decisions on all matters, including the establishment of policies and expenditures of large sums of money and/or implementation of major programs, subject only to overall policy and financial controls.

(d) The employee receives administrative direction based on organisation policies and objectives. Work is reviewed to ensure conformity with policy and co-ordination with other functions.

The employee reviews and evaluates technical work; selects, schedules, and co-ordinates to attain program objectives: and/or as administrator, makes decisions concerning selection, training, rating, discipline and remuneration of staff.

REPORT PREPARATION

This report was compiled by Dr Kim Rickard, BA, PhD, Mr Alex Crowther, BSc (Hons), MSc. and Mr Stephen Gargano, BComm.

PAGE 42

ICT PROFESSIONALS EMPLOYMENT AND REMUNERATION REPORTSTREET ADDRESS 152 Miller Street, West Melbourne, Victoria, 3003, Australia

POSTAL ADDRESS GPO Box 1272, Melbourne Victoria 3001, Australia

TELEPHONE 1300 273 762

EMAIL surveys@professionalsaustralia.org.au

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IT ProfessionalsAustralia